How the Affordable Care Act Will Affect Taxes

1/8/2015 10:44AM

Thanks to the Affordable Care Act, the tax code is undergoing its biggest change in 20 years. The changes are likely to come as a big, money-pinching surprise to a lot of taxpayers. H&R Block’s president and CEO Bill Cobb explains on MoneyBeat.

This transcript has been automatically generated and may not be 100% accurate.

... thanks to the Affordable Care Act and the tax code is undergoing the biggest change about twenty years ... changes are likely to come is the bigger money printing surprise a lot of taxpayers ... Bill Cobb is a two hour blocks President and CEO ... joins us live talk about how the company is helping ... repair its customers for these changes buildings see in our Hari are too busy season right ... on a seasonally or NASCAR season right ... let's talk about upholding it you guys can dump the around the G-8 the Uber Affordable Care Act ... NCA get people understand that this is gonna change ... what how they have to file taxes when you look at this question here the US are cool with it lists his tax return will be a baseline for individuals ... taking a CVT see tax credit ... most of them say no ... and I think that tiny gets to the fact that people wear that something happened ... right there are really aware of what it means for ... well a couple things that happen periodicity all the talk was about insurance you get wearable character center ... the ha ha Jesson the website problems last year ... but an owl going forward everything is administered to the IRS ... so ... the other misconception was people who enter these changes received a subsidy that's correct they received in advance tax credit ... and that ... amount of money ... actually have to be reconciled against your actual income ... because the way the advance tax credit was calculated ... was based on an estimate of your income ... we believe that the majority of people probably underestimated their income for twenty fourteen ... tries to come around this time of year when you do your taxes ... our guests our belief isn't yet to see of this plays out ... is that they're going have to reconcile and it actually have a little bit of a surprise in federal money to the government ... he told Jesus that this is I'm assuming that this affects people all the people or ... who want ... took up Obamacare I mean ... I I work for private employer we have our token doesn't affect people ... like me who don't have to ... show you and I are going to have to check the box to the test a we have insurance and next year will go into deep detail whatever form we have to that you'll get from Europe where are the from line ... that actually proves that we have insurance ... then you move to the seven million people from ... far away and ... fire signed up for the Fridays I get to the one to Libya which called attending the Friday they have to do the reconciliation or just talk about ... then there's a twenty million or so but are still uninsured ... the law the land now is you have to have insurance ... so that group go through and a different route ... which is they only tax penalty ... for their thirty three exemptions that they can take ... around that around to get to avoid that tax friendly and people like us around to ... you know help the mountains ... that is very complicated very ... death penalty to you I think ... deserve misconception that that's got a flat fee in its non alot of the fee ... is that a misconception engine completeness event and it's a flat fee or one percent of your adjusted household income which ever is harder to go IRA interim go with a higher one ... next year that jumped to ... the triples on the five ft are treated twenty five dollars and up ... four two percent fall in your toaster to have percent of adjusted counseling ... I think you'll proofing twelve since taxes taxes and this is all good business for you guys ... how much ... did you how much ... are you had to put out an extra effort to ... gain her arms around yet we had to do in a couple ways one week trading ... we had we we trained about fifty hours for every one of our tax rates we added another seven hours ... just around the CA ... chew we've had more firsts your tax pro was going to hire more bilingual tax from women have over ten thousand bilingual tax pros ... and then today every H R Block is open from ninety nine when come in no point in ensuring no charge to actually ask all these questions it will will will give you form the CIOs Whittier impacted what you need to bring you when you come to your taxes ... are on ... their side taxis ... do homework until things come into effect well ...